65% of small businesses are working on AI visibility, but are they overlooking the channels that feed it

For the last few years, AI is all everyone wants to talk about (or so it seems in the world of SEO!) But is AI adoption as widespread among small businesses? 

Earlier this year, we explored consumers’ most recent local business searches: from where they started to what helped make the decision. In this, we found that AI is already well-used by many consumers. But they didn’t always feel like they could trust its findings, often turning back to Google and other sources to verify claims. 

As part of our 2026 Small Business Marketing Report, we asked 1,000 US small business owners how they approach online marketing, including AI search. We’ll explore what they understand, what they’re doing about it, and how agencies can help turn this understanding into action.

Small businesses are overwhelmingly confident about showing up online 

On the whole, small business owners are confident about being found. 58% are very confident that potential customers can easily find their business online, with a further 26% saying they’re fairly confident.

Yet, our consumer research suggests this confidence could be a little out of proportion. Most consumers (75%) find a local business in under 30 minutes, with 72% looking at three or fewer businesses before making a decision. With consumers considering so few options in such a short time, businesses need to be easy to find, with clear information that helps customers make a decision.

In this study, we’ve already found that not every channel is kept active by business owners, with only 35% saying they have an active Google Business Profile (despite 85% having one in total). Google is seen as a top source of customers for just 22%. However, the majority of consumers used Google during their most recent search for a local business. If confidence is going to translate into customers, businesses need to be certain that their potential customers can find them where they actually look. 

AI search is already on business owners’ radar 

Business owners’ high levels of confidence also extend into AI search, both in understanding how consumers are using it, and what businesses are actually doing to show up in results. It’s encouraging that so many businesses are getting to grips with AI, alongside everything else they have going on as busy business owners. 

86% of small business owners are aware that AI tools are being used by US consumers to find and choose local businesses. Of all owners surveyed, 67% say they have a good understanding of how it works, while 19% are aware but don’t fully understand it. Only a small proportion weren’t aware that consumers use AI for local search. Automotive (87%) and health / medical businesses (85%) were most likely to have a good understanding of how AI works.

Business owners who have sole responsibility for marketing decisions are far more likely to have a good understanding than those who split responsibility with others in their team. That may reflect how much owners learn when marketing decisions sit with them.

For agencies, it’s worth asking what an owner already knows and has tried, so you can build on that understanding rather than assume they need educating.

Being aware that consumers use AI is a great start, but understanding how they use it matters too. AI is the third biggest source of new customers, according to the small business owners. This lines up with what consumers are telling us, with 23% using it during their most recent search for a local business. 

Consumers who started their most recent local search on an AI tool don’t always stay there. Only 2% used it as their only channel, with 43% heading to Google, and 39% looking at social media for further information.

Consumers are using AI to shortlist, but they often need more information to make a decision. 

For businesses, this means that optimizing for AI isn’t enough to connect with the majority of consumers. Small businesses need to be active across all channels that matter to consumers, as consumers visit multiple channels for information, fact-checking, and making decisions. 

Most SMBs have checked and are confident they appear in AI search results

It’s another positive story when looking at how confident businesses are about appearing in AI searches. 54% have checked and are confident their business appears in AI results. 

A further 21% believe their business ‘probably’ appears, but haven’t checked. In total, 46% haven’t checked or don’t know if their business appears, despite the high proportion of business owners who think they have a good understanding of how AI works.

While it’s great that so many businesses have checked if they appear, it’s important to understand that AI search results can be completely different every time. We recently analyzed 200,000 AI prompts on ChatGPT, Google AI Mode, and Google’s AI Overviews across 1,300 locations. Even with the same prompts and AI tools, the businesses recommended weren’t consistent every time. 

AI tools are designed for natural language, meaning a searcher may be writing a very specific and long prompt, as opposed to traditional “dentist in Brooklyn”-type Google searches. Finding your business by name is encouraging, but it doesn’t tell you whether you appear when someone searches for the service they need without already knowing who you are.

Instead, businesses should be attempting to think of realistic searches people may do to find businesses like yours, for example, “need an emergency dentist open late in brooklyn tonight”. Check a range of prompts across different AI tools, and repeat these over time to see how consistently you appear. Tracking these with a tool like BrightLocal’s Local AI Visibility Tracker can help you understand where your business is showing up and where it may need more work.

For agencies wanting to find businesses in need of AI optimization services, the first thing to understand is that a lot of small businesses are already confident. They know what AI is, and many are confident they’re already appearing. Instead of teaching potential customers about the importance of optimizing for AI, show them where they aren’t being recommended. From there, explain the steps you would take to improve their visibility and take some of that work off their hands.

SMBs are actively working on their AI visibility, but a third haven’t started yet

So business owners know that consumers are using AI to find them, and more than half are sure they already appear in AI results. 

When asked if they have already done anything to make sure their business shows up in AI results, 65% said they are actively working on it. This is a similar proportion to business owners that ask for reviews, and higher than those keeping an active presence on Facebook or Instagram. 

13% are planning to start AI optimization in the near future. Another 7% want to, but don’t know where to start. For agencies, this is an opportunity to help owners understand what to prioritize and put a plan in place.

The BrightLocal Academy is full of free courses to help businesses get started with local digital marketing.

Different AI tools use a range of sources to surface information. We recently explored the top directories, websites, and apps being cited by AI tools for local business searches. Google Business Profile, Yelp, Facebook, Tripadvisor, and Opentable were the most frequently cited business directories.

Other sources cited by AI tools include Wikipedia, TrustIndex, CNTraveler, Experience, the New York Times, and Forbes. AI tools get their information from all over the place, so it’s not enough to just show up in a handful of places and expect AI tools to know exactly who you are. 

Worryingly, despite the high proportion of businesses saying they are working on AI visibility, this doesn’t seem reflected in activity on other channels. In this research, we found that:

• Only 35% have an active Google Business Profile
• 41% keep their website active
• Just 26% are active on other review sites and directories

With AI tools pulling heavily from sources such as these, businesses that aren’t focusing on creating a strong presence across the web may not find AI results easy to come by. 

What are businesses really doing?

But what does it mean to be actively working on making a business show up in AI results? 

We asked BrightLocal customers to share their insights into what they’re doing to appear in AI searches for their business and/or clients. 

“We regularly search for our services and service areas in ChatGPT, Google AI, Gemini, and other AI search tools to see whether Boss Lady Boxes is mentioned, which competitors appear, and what sources the AI seems to rely on.

“We’ve focused on strengthening our business identity across our website, Google Business Profile, local citations, chamber memberships, directories, customer reviews, social profiles, and other third-party sources. We’re also building service- and location-specific content, improving structured data, using llms.txt, and encouraging detailed customer reviews that naturally identify the service performed and the community where the work was completed.”

– Michelle Lozier, Owner & President at Boss Lady Boxes Dumpster Rental & Junk Removal

“We are getting reviews on Yelp, hiring marketing companies like BrightLocal and a local SEO agency who specialize in the latest techniques to achieve higher rankings.”

– Remon Toma, Owner at GO! GLASS & ACCESSORIES

Business owners’ confidence in AI is encouraging, particularly when so many are already taking action. For agencies, the opportunity is to build on that work and help owners see where they still have gaps. That means checking whether they appear for the services and locations customers actually search for, while keeping websites, listings, and reviews in good shape. AI visibility should be part of helping customers find and choose a business, wherever their search takes them. 

How does this AI confidence fit into the wider picture? Read the other parts of the Small Business Marketing Report to learn where businesses focus their marketing efforts, whether reviews match customer expectations, and what’s stopping owners from doing more. 

Methodology 

This report was conducted using a representative panel of 1,002 US-based owners of locally operating businesses with 1-50 employees. All respondents were responsible for marketing decisions in their business. This post forms one of four parts of the Small Business Marketing Report 2026; read the full report here: https://www.brightlocal.com/research/smb-marketing-report/ . 

Publications and individuals are welcome to use our research findings, graphics, and data, citing BrightLocal as the author and the page URL: https://www.brightlocal.com/research/smb-report-confident-visibility/